Rafa Benitez has admitted his contract wrangle is hampering his preparations for the January transfer window.

The Anfield boss, close to signing Real Madrid's Gabriel Heinze on a free, has had little chance to scout for new players elsewhere. Benitez says talks between himself and co-owners Tom Hicks and George Gillett will take place "sooner rather than later".

But, worryingly for Kop fans, his plans for New Year signings are not going smoothly.

Benitez said: "The first thing is to finalise the contract and then think about the future."

Asked if he had a rough idea how much he wants to spend in January, he replied: "Not really because we have not talked about the transfer window."

He added: "I am happy with the squad - if we have to adjust something we can watch some players, but I have to talk to the owners on this as well."

The likes of Dirk Kuyt and Daniel Agger are coming towards the end of their current deals and Benitez is keen to get their future sorted.

He said: "It's important because each one will then be more relaxed and focused."